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Responsibility - what responsibility?


Our banks and other lenders are currently very much guided by the code of responsible lending. With this in mind just what can we expect from borrowers, and in particular our first home buyers when it comes to responsible borrowing?

Whilst buying a home is a responsible action and demands that we are somewhat cautious about how we set our budget to accommodate a regular mortgage payment, let's not forget that prior to the sudden "burden" of home ownership and mortgage responsibility we may have been quite different and even "irresponsible" compared to the new home owner we have now become.

As younger people we were often keen to do the things we wanted to and spend as required. Frequently there was little, or no thought given to reigning in our spending habits to meet the responsibilities associated with home ownership.

So, just what are the things that make us really stop and think about what can go wrong and just how do we act responsibly?

Well I guess there are a number of things that require us to "settle" a little and think about "the other things"

A mortgage instalment can only be paid regularly if we have the necessary income - but what if we lose that income?

Young children are generally looked after by Mum or Dad who have been able to take time off work because there is still one income to rely on - but what if that income is lost?

Ensuring that income is protected should we lose an income as a result of death or disability is just as important as arranging that mortgage to suit our needs and our budget!

Call us on (03) 281 9605 or email jerome@thompsonmcneill.co.nz


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